8 Stocks Spiking on Unusual Volume - views

WINDERMERE, Fla. (Stockpickr) -- Professional traders running mutual funds and hedge funds don’t just look at a stock’s price moves; they also track big changes in volume activity. Many times when above average volume moves into equity it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by “superinvestors.”

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it’s always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

Acadia Healthcare (ACHC) is a provider of inpatient behavioral health care services in the U.S. This stock is trading up 6.6% at $16.63 in recent trading.

Today’s Volume: 2.4 million

Average Volume: 73,607

Volume % Change: 7301%

Shares of ACHC are ripping higher today after the company announced the pricing of a registered follow-on offering of 8.25 million shares of its common stock at a public offering price of $15.50 per share.

From a technical perspective, ACHC is bouncing right off its 50-day moving average of $15.80 here with monster volume. This move is pushing ACHC within range of triggering a major breakout trade to new 52-week highs. That trade will hit once ACHC takes out some near-term overhead resistance at $18 with high-volume.

Traders should now look for long-biased trades if ACHC can sustain a move or close above $18 with volume that’s near or well above 73,607 shares.

Radware

Radware (RDWR) develops, manufactures and markets networking solutions that allow its enterprise and carrier customers to deliver their applications between data centers and remote locations, over all points in the network. This stock is trading up 6.8% at $39.75 in recent trading.

Today’s Volume: 627,000

Average Volume: 151,395

Volume % Change: 798%

Shares of RDWR are spiking higher today after Oppenheimer said that the company is in advanced negotiations to license its ADC engine to Juniper Networks (JNPR). The firm thinks the deal could fetch $70 to $100 million over three to five years, and it could lead to an annual EPS increase of about 75 cents per share.

From a technical perspective, RDWR is gapping up strong here with monster volume. This move has pushed the stock into breakout territory since it’s taken out some near-term overhead resistance at $39.48.

Traders should now look for long-biased trades as long as RDWR is trending above $39.48 with strong upside volume flows. On the flipside, traders should look for short-biased trades if RDWR takes out today’s closing low with high volume. A move below today’s low could setup RDWR to fill the gap.

HomeAway

HomeAway (AWAY) is an online marketplace for the vacation rental industry. This stock is trading up 2.9% at $26.44 in recent trading.

From a technical perspective, AWAY is bouncing here right off its 50-day moving average of $25.11 with strong volume. This move is now pushing the stock within range of triggering a near-term breakout trade. That trade will hit once AWAY takes out some near-term overhead resistance at $26.60 to $27.38 with high-volume.

Traders should now look for long-biased trades if AWAY can sustain a move or close above $26.60 to $27.38 with volume that’s near or well above 441,074 shares. If we get that move soon, then look for AWAY to tag its 200-day moving average of $29.49 or possibly trend much higher.

Ansys

Ansys (ANSS) develops and globally markets engineering simulation software and services used by engineers, designers, researchers and students across a range of industries and academia, including aerospace, automotive, manufacturing, electronics, biomedical, energy and defense. This stock is trading up 2.1% at $63.01 in recent trading.

Today’s Volume: 509,000

Average Volume: 450,063

Volume % Change: 99%

From a technical perspective, ANSS moving modestly higher here on above average volume. Traders should now look for long-biased trades in ANSS if it can sustain a move or close back above its 50-day moving average of $64.42 with high volume.

Look for volume on that move that’s near or well above 450,063 shares. If we get that action soon, then this stock has a great chance of re-testing its May high of $69.34 in the near future.

I would simply avoid any long trades in this stock as long as it’s trending below its 50-day moving average.

Fossil (FOSL) is a global designer, marketer and distributer company that specializes in consumer fashion accessories. This stock is trading up 1% at $72.53 in recent trading.

Today’s Volume: 2 million

Average Volume: 1.6 million

Volume % Change: 147%

Shares of Fossil are moving modestly higher today after Citigroup upgraded the stock to buy from neutral with an $88 price target. The firm said that newly lowered EPS is achievable.

From a technical perspective, FOSL is moving modestly higher here on above average volume. This stock recently gapped down huge from over $125 to $75.50 on monster volume. Since that huge plunge, FOSL has trending even lower to its recent low of $71.20. This move has pushed the stock into extremely oversold territory since its current relative strength index is 16.34.

Considering that this stock is so oversold, traders can now look for long-biased trades as long as FOSL can hold that recent low of $71.20, and if it can manage to close near its daily high today of $74.77.

From a technical perspective, VNET is ripping here back above its 50-day moving average of $11.86 with decent volume. This move is quickly pushing the stock within range of a major breakout trade. That trade will hit once VNET takes out some past overhead resistance at $13.63 to $13.75 with high-volume.

Traders should now consider long-biased trades after VENT reports its earnings if it can sustain a move or close above those levels with volume that’s near or well above 341,140 shares. If we get that post-earnings action, then this stock will have a great chance of hitting $15 to $17 or much higher.

On the flipside, I would avoid VNET or look for short-biased traders if it takes out its 200-day moving average of $10.81 with volume post-earnings.

Google

Google (GOOG) is a global technology company focused on improving the ways people connect with information. This stock is trading up 2.7% at $627.99 in recent trading.

Today’s Volume: 2.1 million

Average Volume: 2.4 million

Volume % Change: 57%

From a technical perspective, GOOG is soaring here back above its 50-day moving average of $620.73 with decent volume. Traders should continue to look for long-biased trades as long as GOOG is trending above its 50-day, and if it can manage to close near its daily highs. At last check, GOOG has hit an intraday high of $630.10. If we continue to see that price action, then GOOG should have no problem with tagging its next significant overhead resistance level at $653 to $658 in the near future.

On the flipside, I would avoid any long trades if GOOG closes back below its 50-day with heavy volume.

PetSmart (PETM) is a specialty provider of products, services and solutions for the lifetime needs of pets. This stock is trading up 1% at $58.16 in recent trading.

Today’s Volume: 758,000

Average Volume: 936,984

Volume % Change: 68%

From a technical perspective, PETM is continuing its upward momentum here after the stock closed back above its 50-day moving average of $57.19 yesterday. This move is quickly pushing PETM within range of triggering a major breakout trade. That trade will hit once PETM takes out some near-term overhead resistance at $59.36 with high-volume.

Traders should look for long-biased trades in PETM if it can sustain a move or close above $59.36 with volume that’s near or above 936,984 shares. If we get that action soon, then I would consider it very bullish price action since PETM will be trending in all-time high territory. Some potential upside targets are $65 to $70 if that high-volume breakout triggers in the coming days or weeks.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.